If you’ve ever thought of getting solar for your own home or property, you might’ve also wondered what kind of solar panel subsidies are available out there. In this article, we seek to give you a concise summary of why solar energy is suitable in Singapore, what the government is doing to push solar, and most importantly what kind of subsidies are available that you can benefit from.
It is no question that being such a sunny island like Singapore is, considering solar energy as a form of renewable energy would be intuitive. With an average annual solar irradiance of 1,580 kWh/m2/year, Singapore receives a whopping 50% more solar radiation compared to countries in temperate climates. With such extreme levels of irradiance, it is no wonder that solar panel solutions, particularly for residential properties, are on the rise.
Despite Singapore facing land space constraints, solar is still a viable option particularly for most landed homes & properties due to ample roof space. On average, you will only need
45 square metres of space on your roof for a decently sized system of 8-9kWp, which breaks even between four to six years.
As part of its sustainability roadmap, Singapore is focused on significantly increasing its solar energy capacity. By 2025, the country aims to reach at least 1.5 gigawatt-peak (GWp), which is expected to cover around 2% of the nation’s electricity needs. Looking ahead to 2030, Singapore plans to expand this capacity to 2 gigawatt-peak (GWp), enough to power over 350,000 households each year. These goals reflect Singapore’s strong commitment to utilizing renewable energy for a more sustainable future, as highlighted in the SG Green Plan.
While Singapore does not offer direct subsidies for solar panel solutions, there are solar panel subsidies available through various sell back schemes. These schemes, which allow solar consumers to sell excess energy back to the grid, vary depending on your solar panel system size.
Note: While most solar websites in Singapore will also refer to these as solar net metering, it is technically not net metering in the strictest sense. This is because net metering receives credits which are normally measured by kWh, whereas Singapore’s excess payout is based on a rate established by the government or utilities.
What is a sellback scheme? Simply put, it is a billing mechanism in Singapore that credits owners of solar panel systems for the excess energy they generate, which can be done with either SP Services (SPS) or the Energy Market Company (EMC).
There are currently three main schemes: Simplified Credit Treatment Scheme (SCT), Enhanced Central Intermediary Scheme (ECIS) and Market Participant (MP) with Energy Market Company (EMC).
How SCT works is that you will be compensated for any surplus energy your solar panels generate at the prevailing tariff rates, minus grid charges. These grid charges make up about 20-25% of your tariff rates, which means that your energy is sold at roughly 70-75% of the prevailing tariff rate
The typical practice is that solar installers will handle the registration for the SCT scheme on the behalf of homeowners, provided that you go ahead with a certified solar installer.
Under ECIS, solar energy surplus will be compensated based on half-hourly wholesale energy prices, instead of prevailing tariff rates. The major difference is that these energy prices are often volatile and based on market conditions in the Open Electricity Market (OEM).
It is difficult to predict whether the ECIS or SCT will earn you more in the short term. However, based on our anecdotal experience, the SCT generally provides better & more stable rates in the long term compared to the ECIS, which has only outperformed the SCT historically during major crises such as the Global Energy Crisis.
Companies with a solar capacity of 1 MWac or more have the option to register directly with EMC as a Market Participant for electricity sales. In this arrangement, eligible companies are paid based on nodal energy prices, which are set according to the energy demand and supply at various injection nodes across Singapore.
It’s essential to note that becoming a Market Participant involves substantial upfront costs, primarily suitable for energy companies with multiple assets. These fees comprise a non-refundable one-time registration fee of $5,400 and an annual fee of $10,800.
In Singapore, solar owners can also benefit from the sale of Renewable Energy Certificates (RECs), providing additional subsidies. RECs are tradable assets representing green electricity generated from renewable sources, allowing solar energy producers in Singapore to derive value from their solar panels. Each REC corresponds to 1MWh of electricity produced by their solar panels.
Corporations without their own solar installations can use RECs to offset their carbon emissions and access sustainable energy sources. By purchasing RECs, these companies gain certified access to solar energy generated by solar producers, facilitating a win-win arrangement. It aids companies in achieving their carbon reduction goals while providing financial support to solar energy producers for maintaining their systems.
Do you currently own a solar panel system, and are looking to sell RECs? At FOMO Energy, we not only help system owners sell their RECs, we also offer free preventive maintenance & repairs, real-time fault detection as well as extended warranties under our REConnect program. Simply WhatsApp us at +65 80610116 or fill up our contact form here for more information!
In March 2021, Singapore unveiled the Singapore Green Building Masterplan (SGBMP) to enhance building sustainability and energy efficiency. As part of this, the Building and Construction Authority (BCA) introduced GMIS-EB 2.0 on June 30, 2022. GMIS-EB 2.0 aims to improve the energy performance of existing buildings and accelerate the transformation of 80% of Singapore’s buildings into green, energy-efficient structures by 2030.
The GMIS-EB 2.0 scheme offers substantial subsidies of up to $1.2 million or 50% of qualifying costs, prioritising buildings meeting high energy performance standards. GMIS-EB 2.0 encourages energy-efficient retrofits and is open to buildings with a minimum Gross Floor Area (GFA) of 5,000 square metres. Eligible building types include commercial, industrial, and residential, with specific criteria for light industrial buildings based on Singapore Standard Industrial Classification (SSIC) codes. This initiative aligns with Singapore’s commitment to sustainability and energy efficiency, contributing to a greener built environment.
Are you currently considering going solar for your home, but wish to seek expert advice? At FOMO Energy, we have successfully built & maintained over 190 solar panel projects, enabling our homeowners to save up to 80% of their initial bills. With solar panel subsidies available, extended 5-year comprehensive warranties,, and round-the-clock monitoring to boot, we always ensure our customers get the best out of their roof, and ultimately their system without any faults & 100% peace-of-mind.
Interested in getting a quote from us? Simply WhatsApp us at +65 80610116 or fill up our contact form here!
